Auction houses are expecting to see a tail-off in used car values in the final quarter of 2015 as greater volumes of cars enter the market.
Increased volumes of part-exchange vehicles generated by the September plate change and leasing company disposals will put pressure on margins, according to the National Association of Motor Auctions (NAMA)
Paul Hill, NAMA chairman said: “As the September plate change is upon us, we expect that there will be significant increases in the wholesale volumes starting to enter the market and this will build through the month of September.
“It is also forecast that leasing vendors will have increasing numbers of returns through September and into October,” he said.
“With most manufacturers chasing registrations and market share, we will see price realignment in the final quarter of 2015 as values continue to move downwards in line with supply and demand.
“The larger franchised dealers are focused on stock turn, to sell the ever increasing numbers of pre-registrations, part exchanges and PCP returns and the general smaller dealers continue to be under margin pressure,” he said.
NAMA’s August monthly report showed that year on year values in August were up 1.4% to £5,588 while volumes fell -2.2% to 99,680.
NAMA said there were a significant number of budget vehicles sold at auction in August, which reduced the average price of vehicles, concealing some of the value achieved in other segments during the month.
| 2014 | 2015 | Diff % | |
| Late & Low | £14,900 | £14,800 | -0.7% |
| Fleet | £8,625 | £8,800 | +2.0% |
| PX (Young) | £5,175 | £5,650 | +9.1% |
| PX (Old) | £2,550 | £2,725 | +6.8% |
| Budget | £775 | £875 | +12.9% |
